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As the aviation industry seeks sustainable propulsion solutions, innovative technologies have emerged, among which rim-driven fan (RDF) systems hold notable promise. This comprehensive review paper deeply investigates RDF technology, uncovering its principles, benefits, and transformative potential for aviation propulsion. Amid escalating concerns about greenhouse gas emissions, the aviation sector’s shift towards electric propulsion has gained impetus. RDF technology has emerged as a beacon of optimism, heralding the prospect of energy-efficient and eco-conscious air travel. Navigating the slower development pace of RDF technology for aerospace applications, this paper draws insights from analogous marine technologies and relevant literature. Merging these realms, this paper meticulously examines RDF systems, spotlighting their unique attributes, with particular emphasis on the rim-driven configuration and its fundamental design principles. This review delves into the progressive strides accomplished in RDF’s evolution, encompassing the spectrum from evolving electric motor variants to intricate design considerations, strategic noise and vibration management, innovative control methodologies, advancements in bearing technology, and the strategic integration of finite element analysis (FEA) and computational fluid dynamics (CFD) for comprehensive performance optimization. In the context of aviation’s electrification journey, the exploration of RDF technology marks a pivotal inflection point. This paper concludes by succinctly encapsulating pivotal insights, accentuating RDF technology’s central role in reshaping aviation’s propulsion paradigm. As the aviation sector charts a course towards sustainable progress, the lessons gleaned from RDF technology are poised to chart the trajectory of aviation’s environmental transformation.